Yes, but only through specific methods — and most come with costs that can make the debt worse
You can use one credit card to pay off another, but the card issuer won't let you do it directly. You can't call Visa and transfer a balance from one card to another card at a different bank. What you can do is use your credit card to get cash (through a cash advance or balance transfer), then use that money to pay the other card's bill. The catch: each method charges fees and interest that often make this strategy more expensive than other ways to tackle the debt.
The two real options are a balance transfer (moving debt from one card to another) and a cash advance (withdrawing cash against your credit limit). A balance transfer usually costs less if you may have access to, but a cash advance is faster and doesn't require approval. Neither solves the underlying problem — you still owe the money, and now you're paying to move it around.
Key Takeaways
- A balance transfer moves debt from one card to another and typically charges 3 to 5 percent of the amount transferred, though some cards offer 0 percent for a limited time.
- A cash advance lets you withdraw money against your credit limit but charges a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, starting when ready with no grace period.
- Using one card to pay another only makes sense if the new card has a lower interest rate or a promotional period that saves you money over time.
- Both methods increase your total debt if you don't pay down the balance — you're borrowing more money, not reducing what you owe.
How a balance transfer works and what it costs
A balance transfer moves your debt from one credit card to another, usually one with a lower interest rate or a promotional 0 percent period. You contact the new card issuer and tell them the name of the old card, your account number, and how much you want to transfer. The new card company pays off that amount on the old card, and the debt now appears on your new card's bill.
The fee is typically 3 to 5 percent of the amount transferred — so moving a $5,000 balance costs $150 to $250 upfront. Some cards waive this fee for the first 60 days after you open the account, but most charge it. After the transfer, you pay interest on the new card's rate. If the card offers a promotional period (often 6 to 21 months at 0 percent), you pay no interest during that time — but only if you don't make new purchases on the card, which usually resets the clock.
A balance transfer makes financial sense only if the new card's interest rate or promotional period saves you more money than the transfer fee costs. If you're moving a $5,000 balance from a card charging 22 percent to a card charging 15 percent, and you can pay it off in a year, the transfer fee might be worth it. If you're moving it to a 0 percent card and paying it off before the promotional period ends, the fee is almost always worth it.
How a cash advance works and when to use it
A cash advance lets you withdraw cash against your credit limit at an ATM or bank. You can then use that cash to pay the other card's bill. Unlike a purchase, a cash advance charges a fee upfront (usually 3 to 5 percent, sometimes higher) and a higher interest rate (often 25 to 30 percent) that starts accruing when ready — there is no grace period like there is for purchases.
A $5,000 cash advance with a 4 percent fee costs $200 when ready. If you don't pay it back within a month, you'll owe roughly $104 in interest on top of that. A cash advance is slower and more expensive than a balance transfer, but it doesn't require the new card issuer's approval, and you get the money the same day. Use a cash advance only if you can't may have access to for a balance transfer and you need the money right now.
When this strategy actually saves you money
Using one card to pay another only makes sense in a narrow set of circumstances. The most common is when you have a high-interest card and you may have access to for a balance transfer card with a 0 percent promotional period. If you can transfer the balance, pay no interest for 12 to 18 months, and pay down the principal during that time, you come out ahead — even after paying the transfer fee.
Another scenario: you have two cards, one at 24 percent and one at 14 percent, and you can't get a balance transfer. Paying off the high-interest card with a cash advance from the low-interest card might still save money if you pay the cash advance back quickly. The math is tight, but it can work.
The strategy fails if you transfer the balance and then don't pay it down. You've now borrowed more money (you owe the transfer fee on top of the original debt), you're paying interest on a larger amount, and you haven't solved the underlying problem. This is especially true with cash advances — the fee and interest rate are so high that you're almost always better off finding another way to pay.
What happens to your credit score
Both a balance transfer and a cash advance affect your credit score, but usually not in a way that makes the strategy worse. A balance transfer is a hard inquiry (a small, temporary dip) plus a new account (which lowers your average age of accounts). Your credit utilization — the percentage of your total credit limit you're using — might go down if the new card has a higher limit, which helps your score.
A cash advance doesn't create a new account, but it does use up part of your credit limit on the existing card, which can raise your utilization and lower your score slightly. Neither effect is permanent, and both are usually outweighed by the benefit of paying down high-interest debt faster.
Alternatives that might cost less
Before you transfer or advance, consider other options. If you have savings, using that money to pay off the card and then rebuilding savings is usually cheaper than any fee or interest rate. If you can't do that, a personal loan from a bank or credit union often charges less interest than a credit card and doesn't have a transfer fee — you borrow the money and pay off the card in one lump sum.
A debt consolidation loan works the same way: you borrow enough to pay off multiple cards, then make one monthly payment. These loans typically charge 6 to 36 percent interest depending on your credit score, which is often less than credit card rates. A nonprofit credit counselor can help you compare these options and build a payoff plan — most offer this service for free or a small donation.
The real problem this doesn't solve
Moving debt from one card to another doesn't reduce what you owe. It only changes where you owe it and how much interest you pay. If you transfer a $5,000 balance and then run up $3,000 in new charges on the old card, you now owe $8,000 across two cards — plus the transfer fee. This is how people end up with debt on multiple cards that keeps growing.
The only way out is to stop adding new charges and pay down the principal. A balance transfer or cash advance can buy you time (especially a 0 percent promotional period) to do that, but only if you treat it as a important date, not a fresh start. If you're using one card to pay another because you can't afford to pay either one, the real issue is spending more than you earn — and moving the debt around won't fix that.
Frequently Asked Questions
Can I transfer a balance to a card from the same bank?
Most banks don't allow you to transfer a balance between their own cards — the system is designed to prevent it. Some exceptions exist, but they're rare. If you have two cards from the same issuer, call and ask directly. If they won't allow it, you'll need to use a card from a different bank.
What if I don't have a credit card to transfer to?
You can open a new card specifically for a balance transfer, but you'll need to be approved first. This takes a few days to a week. If you need money when ready, a cash advance from an existing card is faster, though more expensive. A personal loan from a bank or credit union is another option and often has a lower interest rate.
Does a balance transfer hurt my credit score?
A balance transfer causes a small temporary dip (from the hard inquiry) but can improve your score over time if it lowers your credit utilization across all cards. The new account lowers your average age of accounts, which is a small negative, but this effect fades after a few months.
What happens if I can't pay off the balance before the promotional period ends?
The interest rate jumps to the card's regular rate, which is usually 15 to 25 percent. Any remaining balance will start accruing interest at that higher rate. Plan your payoff timeline carefully and set a reminder before the promotional period ends so you're not caught off guard.
Is it better to use a cash advance or a personal loan?
A personal loan is almost always cheaper. Cash advances charge high fees and interest rates with no grace period, while personal loans typically charge 6 to 36 percent interest with a fixed monthly payment. A personal loan also doesn't use up your credit limit, so it's less likely to hurt your credit score.